Well there's interest rates from the Fed, and then there's mortgage rates. Since there's a higher default risk from mortgages than government debt, I think hou

Well there's interest rates from the Fed, and then there's mortgage rates. Since there's a higher default risk from mortgages than government debt, I think housing interest rates could rise again, they are at historic lows right now, although the fed funds rate as you say has been trapped near zero. While the mortgage rate is usually tied in with the value of the 10 year bond, it seemingly has done interesting things recently now that the 10 year bond is so low that a bank wouldn't cover it's default risk with that rate.